The Australian Securities and Investments Commission (ASIC) is currently in the process of reviewing changes to financial service provider Internal Dispute Resolution (IDR) legislation with a fundamental change being that social media platforms are now considered formal sources of complaint.

I feel this is a long-overdue update.

The financial sector has been under the microscope since the Banking Royal Commission highlighted the mass distrust consumers have for financial service providers. The commission noted that a large percentage of customers felt ‘unheard’ by these organisations and often abandoned or ignored complaints processes for this very reason.

Social media data aggregation tools such as Salesforce’s Social Studio have long been employed by a broad range of industries to ensure that they’re staying on top of what’s being said about them. It’s crucial for social customer service best-practice. However, it’s not until now that we’re seeing government regulation enforcing rules that will require tools such as this to capture, moderate and report social media complaints to The Australian Financial Complaints Authority (AFCA).

Key takeaways from the current proposed legislation are that financial service providers must;

1) Create and deploy internal dispute resolution (IDR) procedures that meet the standards or requirements made or approved by ASIC.

2) Be members of one or more ASIC-approved external dispute resolution (EDR) schemes such as AFCA.

3) Understand the definition of a ‘complaint’.

Complaint; ‘An expression of dissatisfaction made to an organisation, related to its products or services, or the complaints handling process itself, where a response or resolution is explicitly or implicitly expected.’

4) Acknowledge that social platforms are now considered formal sources of complaint.

Amicus Digital have over a decade of social data aggregation/moderation experience. For further information regarding our RG165 compliance audit services, please don’t hesitate to get in touch.